Greed, fear and doubt. These three emotions can hinder your trading. Every binary options trader should analyze his or her own emotional makeup and the resources
available for trading. Many books and articles have been written on this subject, but the
conclusions are mostly a matter of self-analysis that depends on each binary options
trader’s personal characteristics. Fear of losing can cause traders to make bad trading decisions, and
doubt can cause the same results. Greed can cause some traders to allow
good profits to erode back to breakeven levels or even losses as they hope for
even bigger gains. Putting on too many trades searching for the “big kahuna”
or “mother lode” also stems from greed. Sometimes it is best to just have a series of base hits rather than going for the grand slam. I certainly do not have
the patent on this cliché, but it has been said, “It is better to have a million
profitable trades rather than one profitable trade that makes a million.” Understanding your emotions is a very important subject that needs to
be addressed and examined. Trading binary options can produce an increase in your heart
rate and your blood pressure. Make sure you are physically fit to handle the
demands that trading in the markets may produce. You need to monitor
your trading behavior and actions while under stress or while dealing with
what I call the adrenaline rush. When you are wrong, do you freeze up and
get the feeling of butterflies in your stomach? Do you become unduly irritable or feel panicky? I hope that you are aware that these conditions are not conducive for successful binary options trading. Lack of confidence and fear are your enemies. Avoid putting yourself in
a situation that will cause you to be skeptical or afraid before you trade.
Also, do not trade binary options while going through major personal events such as buying or selling a house, moving, illness, a change in careers or loss of a job, a breakup in a relationship or divorce, a death in the family, or loss of a friend. Try to make educated decisions, and make sure you have the time to invest in your work before putting on any trades.